Written By: Khushboo Verma

Picture this: a summer evening in Mumbai, 1984. A young entrepreneur named Raghunandan Kamath opens a small ice cream shop in Juhu with one revolutionary idea – why not make ice cream with actual fruit pulp instead of artificial flavors? Four decades later, that simple question has turned into a ₹380 crore business with 170+ outlets nationwide. If you're exploring franchise opportunities in India's booming dessert sector, the naturals ice cream franchise deserves your attention. 

Here's why thousands of entrepreneurs are looking at this brand and what you need to know before investing your money.

The Ice Cream Business in India Right Now

India's ice cream market reached ₹268 billion in 2024. Experts project it will hit ₹1,078 billion by 2033, growing at 16.7% annually. That's massive growth.

But here's something interesting. Indians consume just 1.6 litres of ice cream per person each year. Compare that to 28.4 litres in New Zealand or 20.8 litres in the US. This gap means one thing: huge untapped potential.

Quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto have changed the game completely. Late-night ice cream orders now contribute 20-25% of sales for well-located outlets. Additionally, consumers across tier-2 and tier-3 cities are shifting from local parlors to branded outlets that guarantee hygiene and ingredient transparency.

What Makes Naturals Ice Cream Franchise Different

Founded in 1984, Naturals built its reputation on three simple ingredients: real fruit pulp, fresh milk, and natural sugar. No preservatives. or also no artificial colors or synthetic flavors.

The brand currently operates 170+ outlets across 15 states. Revenue jumped from ₹93.14 crore in FY21 to ₹294 crore in FY24, showing remarkable pandemic recovery. Moreover, the company targets ₹500 crore by FY27 and aims to cross 200 stores by December 2025.

Key highlights:

• 125+ flavors with 20 available year-round
• Seasonal specials like alphonso mango, sitaphal, tender coconut
• 50-60% repeat customer rate in established outlets
• Regional flavors like kubani in Hyderabad, jackfruit in Konkan

The brand's tender coconut flavor even made it to Taste Atlas's list of top 100 iconic ice creams globally. Furthermore, Naturals partnered with Rebel Foods cloud kitchens to reach areas without physical outlets, reinforcing why many investors compare its growth potential with the naturals ice cream franchise model they are evaluating.

How Naturals Ice Cream Franchise Compares to Other Brands

Naturals sits in the sweet spot between mass-market affordability and premium pricing

Investment Breakdown: The Real Numbers

The naturals ice cream franchise requires ₹12-25 lakhs total investment. Here's where your money goes:

Space needed: 200-500 sq.ft Staff required: 4-6 employees Setup time: 60-90 days

Important note: Naturals currently doesn't charge franchise fees or royalties, though the company has indicated these may be introduced soon. Get in while this window lasts.

Profit Potential: What Franchisees Actually Earn

Performance varies by location, but patterns are clear across established outlets.

Monthly Revenue:

• Low-performing: ₹6.6 lakhs
• Mid-range: ₹10-15 lakhs
• High-performing: ₹20-25 lakhs

Margins:

• Gross Profit: 50-60%
• Net Profit After Costs: 19-30%

Break-even timeline:

• Tier-1 cities: 12-18 months
• Tier-2/3 cities: 18-24 months

Example: Mid-performing outlet

• Monthly revenue: ₹12 lakhs
• COGS (40%): ₹4.8 lakhs
• Rent: ₹1.2 lakhs
• Staff salaries: ₹1.5 lakhs
• Utilities: ₹80,000
• Monthly profit: ₹3.7 lakhs
• Annual profit: ₹44.4 lakhs

Franchisees typically retain 85-94% of sales revenue. At this performance level, you recover your investment within 18 months,which further strengthens the appeal of choosing the naturals ice cream franchise over newer brands with untested economics.

Location: The Deal-Maker or Deal-Breaker

Even with a strong brand, wrong location equals failure. Right location equals success even with average management.

Best locations:

• Residential clusters with 2,000+ households within 1 km
• College zones with steady student traffic
• Commercial high streets with pedestrian movement
• Delivery-heavy neighborhoods with quick-commerce penetration

Avoid these:

• Isolated spots with limited footfall
• Areas with 3+ ice cream competitors within 500 meters
• Locations without parking in tier-2/3 cities
• Basement or second-floor spaces

Pro tip: Evening footfall drives 60-70% of weekday sales in residential areas. Naturals is targeting tier-1 and tier-2 cities like Chennai and Lucknow for its 2025 expansion.

Daily Operations: What Running This Looks Like

Ice cream businesses are simpler than most F&B formats. No complex cooking. or, No chef dependency. Nor elaborate prep work.

Your daily tasks:

• Stock management
• Freezer temperature monitoring (critical for 2-3 day shelf life)
• Counter service
• Delivery coordination
• Store hygiene
• Payment reconciliation

Most franchisees run the outlet themselves for the first 6-12 months before hiring a manager. Naturals provides 7-10 days training covering product knowledge, inventory systems, customer service, hygiene compliance, and brand standards.

Challenges You Should Know

• Competition: Local parlors undercut on price. Brands like Amul offer cheaper alternatives. Baskin Robbins competes in variety.
• Seasonality: Summer generates 40-50% higher sales. Plan your cash flow for slower winter months. However, year-round consumption is increasing with quick commerce.
• Supply chain: Products last only 2-3 days. Requires reliable cold chain logistics. Challenging in tier-3 cities with frequent power cuts. Naturals operates a Mumbai facility producing 20 tonnes daily and plans to double capacity.
• Staff turnover: High turnover means constant retraining to maintain standards.
• Delivery dependency: Quick-commerce platforms take 20-25% commission despite boosting sales. Hindustan Unilever reported quick commerce accounts for over 10% of their ice cream business in 2023.

Red Flags: When to Walk Away

Location issues:

• Proposed spot has 3+ ice cream brands within 500 meters
• Monthly rent exceeds 12% of projected revenue
• No reliable power supply
• Landlord won't agree to minimum 5-year lease

Business model issues:

• You expect passive investment with hired management from day one
• You can't commit to 6-12 months of active involvement
• Break-even projections exceed 30 months
• Your location is in an area Naturals plans company-owned outlets

Critical Questions Before Signing

Financial clarity:

• What are exact product supply terms and pricing?
• When will franchise fees or royalties be introduced?
• What payment terms apply for inventory?
• What happens to the security deposit if I exit early?

Operational control:

• What exclusivity radius do I get in writing?
• Can I open additional outlets if the first succeeds?
• What are penalties for not meeting brand standards?

Exit strategy:

• What are the terms if I want to sell in year 2 or 3?
• Can I transfer the franchise to family or partner?
• Are there non-compete clauses after exit?

Due Diligence: Do This Before Investing

Talk to 3-4 existing franchisees:

• Visit outlets unannounced during peak hours
• Ask about actual monthly revenue vs projections
• Understand hidden costs
• Find out their break-even timeline
• Ask if they'd open another outlet

Conduct location analysis:

• 7-day footfall counting
• Count competitors within 1 km
• Check parking and accessibility
• Verify delivery app coverage
• Test power supply reliability

Financial validation:

• Get 3-6 months revenue data from comparable outlets
• Create 24-month cash flow projections with conservative estimates
• Factor 30% lower revenue for first 6 months
• Include 10% buffer for unexpected costs

Legal review:

• Have franchise agreement reviewed by F&B/franchise lawyer
• Verify all claims in writing
• Understand termination clauses
• Calculate exit costs

The Application Process

• Step 1: Visit naturalicecreams.in and fill the franchise inquiry form. Provide location preference, business experience, and available capital. Only apply through the official website.
• Step 2: Naturals reviews applications based on location viability and financial capability. Response times vary. Many applications get rejected or receive no response.

Common rejection reasons:

• Area already allotted
• Company planning company-owned store
• Business strategy doesn't support expansion in that area

Finalize location with Naturals' guidelines on space, visibility, and foot traffic.

Sign franchise agreement after legal review.

Complete interior work and equipment installation (45-60 days).

Launch with soft and grand opening support.

Realistic timeline: 3-5 months from application to launch. However, many applicants wait 6+ months or never hear back.

Who Should Apply

This franchise works for:

• First-time entrepreneurs with limited F&B experience
• Investors seeking low-risk models
• Families with retail space in residential areas
• Business owners diversifying ventures
• Individuals willing to be actively involved

Not ideal for:

• Passive investors expecting hands-off returns
• Those expecting profitability within 6 months
• Entrepreneurs unwilling to follow brand standards
• Investors without local market knowledge

Final Take

The naturals ice cream franchise offers balanced entry into India's growing dessert market. The brand provides recognition, operational support, and product quality that would take years to build independently.

However, success depends on three things: location selection, consistent operations, and realistic expectations. This isn't a get-rich-quick scheme. It's a steady business opportunity in a growing category.

• Best case: Investment recovered in 12-15 months with strong location and execution
• Average case: 18-24 months with moderate location and standard operations
• Challenging case: 24-36 months in tier-3 cities or sub-optimal locations

The brand is expecting 20% overall growth and 15% year-on-year same-store sales growth in 2025. With ambitious expansion plans to add 30 new stores this year, now could be the right time to get in.

Next Steps

If you're ready to move forward:

• Validate numbers with 2-3 existing franchisees in similar markets
• Conduct footfall analysis and competitor mapping
• Create detailed financial projections
• Secure legal review of franchise agreement
• Apply at naturalicecreams.in

If you're still evaluating:

• Compare Naturals with 2-3 alternative franchises
• Visit 5-10 Naturals outlets across locations
• Assess your readiness for 12-18 months of intensive involvement

For entrepreneurs entering 2026 with capital, commitment, and willingness to learn, Naturals provides a structured path to building a profitable outlet in one of India's most resilient food segments. The ice cream market is heating up. The question is: are you ready to scoop up this opportunity?

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.